Cantor: Tax Reform May Mean Higher Payments for Businesses

Tax reform should include a decrease in corporate tax rates, but it may result in higher tax payments by businesses as their loopholes and exemptions are shut down, says House Majority Leader Eric Cantor, The Hill reports.

Eric Cantor

“We're for tax reform," he told CNBC. "And tax reform may result in certain entities, industries ending up paying more under a much-reformed system where there are lower rates."

The idea is to dump "crony capitalist" tax benefits that are now on the books.

"In a reformed tax code, what we're saying is lower the rates, broaden the base, and get rid of the special-interest loopholes," Cantor said.

He said the Ways and Means Committee has begun working on tax reform, which could be included as part of a bargain with Democrats to cut the deficit in return for approving a debt limit increase.